Stem Holdings (CSE: STEM) continues to see its operations make gains in terms of revenue. The company last night posted its third quarter financial results, highlighting record sales of US$12.4 million on a gross basis.
In terms of net revenues, the company posted $10.6 million in revenues. Following cost of goods sold of $9.1 million, gross profits totaled out at $1.5 million.
Despite revenue growth, the firm still posted a loss from operations of $4.6 million. The loss follows total operating expenses of $6.1 million, comprised largely of $4.5 million in general and administrative expenses and professional fees of $1.0 million.
The company did however receive a boost from total other income, which totaled $7.1 million during the quarter, lead by changes in fair values of warrant liabilities of $6.4 million. The firm also received a boost of $0.8 million from other income of $0.8 million.
Stem Holdings overall reported a net income of $2.6 million for the three month period, and ended the quarter with $9.1 million in cash and cash equivalents.
Commenting on the quarter, CEO Adam Berk stated, “We are building our footprint with a strong ongoing focus on cost reductions, operational excellence, and customer acquisition and retention to drive topline sales and margin improvement as we did this quarter. We expect to achieve longer-term benefits that will build value for our shareholders as we invest in organic and acquisitive growth.”
Stem Holdings last traded at $0.385 on the CSE.
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